Back to top

Image: Bigstock

Torchmark (TMK) Rewards Shareholders with 7% Dividend Hike

Read MoreHide Full Article

In a bid to return more value to shareholders, the board of directors of Torchmark Corporation recently approved a 7.1% hike in its quarterly dividend. The recent hike percentage is nearly double of 3.7% dividend increase approved in Mar 1, 2016   

The company will now reward investors with a dividend of 15 cents per share as against 14 cents paid on Feb 1, 2017. Shareholders on record as of Apr 3, 2017, will have the meatier dividend in their pockets on May 1, 2017. Based on the closing share price of $77.53 as of Feb 28, the increased payout translates to a dividend yield of 0.72%.

Backed by its operating strength, the life insurer has a solid track record of increasing dividend each year. The company has grown its dividend at a 5-year CAGR (2011-2016) of 16.14%.

Torchmark has a strong capital management policy in place. The company’s initiatives are supported by its solid cash flow generation, which in turn, is driven by consistently strong operational performance.  Torchmark is considered a shareholder-friendly company as it has been actively increasing investors’ wealth through an ongoing buyback program that began in 1986. By virtue of its intelligent capital management strategy, the company has generated 83% returns for investors over the past 10 years.

Shares of Torchmark gained 5.45% since the release of fourth-quarter results, outperforming the Zacks categorized Life Insurance industry’s growth of 2.65%. Solid growth, both in the bottom line and the top line, contributed to the outperformance. Robust growth in premium revenues and net investment income were responsible for the improvement. Moving ahead, strong capital management and strategic initiatives undertaken by the company are expected to drive the stock higher.



However, this Zacks Rank #4 (Sell) stock has witnessed its estimates moving south over the last few weeks. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. We expect this shareholder-friendly move to induce analysts to raise estimates, leading to a rank upgrade.

Dividend hikes and share buybacks not only testify to the operational and financial strength of a company, but also make a stock attractive for yield-seeking investors. Recently, the board of directors of Argo Group International Holdings, Ltd. increased its quarterly dividend by 22.7%. Also, the board of directors of XL Group Ltd. hiked its quarterly dividend by 10%. Last month, the board of directors of HCI Group, Inc. (HCI - Free Report) had raised its dividend by 16.7%.

Everything You Need to Know About Snapchat BEFORE It Goes Public

You may be curious about the buzz surrounding Snap Inc.'s IPO on March 2. With the company expected to be valued around $22 billion, it is expected to be the largest IPO since 2014. But should you snap up this tech stock on Day 1? In the 2017 IPO Watch List, you'll get an inside look at Snap's exciting prospects and potential challenges. You'll also learn about 4 other exciting tech companies with jaw-dropping growth. Each could go public in the coming months. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the latest scoop. Download this IPO Watch List today for free >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


HCI Group, Inc. (HCI) - free report >>

Published in